Parents Now Pay More for Childcare Than Housing Across the U.S.

November 24, 2025

A new LendingTree analysis reveals that childcare costs in the United States have reached crisis levels, with infant care exceeding average rent in 11 major metropolitan areas and care for two children surpassing rent in 85 cities nationwide. The financial strain has intensified due to a federal government shutdown that has cut funding to 140 Head Start programs serving 65,000 preschoolers, forcing at least 20 programs to close and affecting nearly 10,000 children. Nationally, full-time infant care averages $1,282 monthly compared to $1,716 for rent, but childcare costs have surged over 30 percent between 2020 and 2024 due to educator shortages and childcare deserts.

Who is affected

American families with young children across the nation's 100 largest metro areas
65,000 preschoolers enrolled in 140 Head Start programs nationwide
Nearly 10,000 children directly affected by at least 20 Head Start programs that have partially or fully closed
Parents in specific cities including Springfield (MA), Milwaukee, Wichita, Omaha, Baltimore, Buffalo, Syracuse, Spokane, Minneapolis, Toledo, Worcester, and Rochester
Families in the Washington D.C. metro area and Baltimore region
Young families struggling with combined rent and childcare expenses
Early childhood educators facing shortages
Communities in rural and low-income regions designated as childcare deserts

What action is being taken

Researchers at LendingTree are conducting national analysis on childcare costs versus rent
At least 20 Head Start programs are partially or fully closing operations
Local officials are urging Congress to restart childcare funding
Head Start and Early Head Start programs in the D.C. region are warning about potential closures

Why it matters

This crisis matters because childcare costs have become a massive financial burden that rivals or exceeds housing expenses, forcing families to allocate enormous portions of their budgets to care while potentially sacrificing long-term financial goals like retirement and emergency savings. The federal shutdown has transformed an already strained childcare system into a breaking point, eliminating subsidized early childhood education options for thousands of families who have few alternatives, particularly in communities that already lack available childcare slots. The situation creates cascading economic challenges for young families who cannot afford to stay home and lack family support networks, threatening their financial stability and limiting workforce participation options.

What's next

Local officials have urged Congress to restart childcare funding immediately. Matt Schulz advised families to brace for continued financial pressure while attempting to maintain long-term goals like retirement and emergency savings to the degree possible. Head Start programs warn that unless Congress releases funds, more families will be pushed into the already overburdened private childcare market.

Read full article from source: The San Diego Voice & Viewpoint